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After the 2008 recession, businesses began to rely less on traditional credit lines and more on factoring and accounts receivables. Experts believe this trend will continue to grow as more and more businesses forgo credit lines and factor accounts receivable. Businesses rely on being able to enforce debts to be able to succeed.
Each credit bureau will receive notice of this lien, and your credit score will take a nosedive. Unlike the IRS, your local municipality might report your unpaid tax bill directly to a debt collector. Referral to collections will undoubtedly hurt your credit, as such agencies have close relationships with the credit bureaus.
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